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Markets Start New Trading Week in the Green; ORCL Beats in Q1

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Monday, September 9th, 2024

Market indexes spent the full trading session in the green to start a new week on Wall Street. All were off intra-day highs, but only the small-cap Russell 2000 trailed off in the final half-hour of trading or so. The Dow grew +484 points, +1.20%, while the S&P 500 and the Nasdaq were both up +1.16%. The Russell came in +0.31%.

Inventories, Credit Move Opposite Directions


Two relatively minor economic reports came out during today’s regular trading session: Wholesale Inventories for July and Consumer Credit for August. Inventories came in at +0.2%, 10 basis points (bps) below expectations but warmer than the downwardly revised 0.0% the previous month. This year, we’d seen a +0.5% in May and a -0.5% back in March. As a rule of thumb, inventories are generally seen as the least-desirable form of economic growth.

Consumer Credit for August, however, more than doubled expectations to $25.45 billion today — the highest print since November of 2022. It’s also roughly 5x higher than the previous month’s downwardly revised $5.23 billion. Revolving credit (including credit cards) climbed to its biggest level in five months, to $10.6 billion. Non-revolving credit (student loans, auto payments, etc.) grew even larger: $14.8 billion last month.

Oracle Beats in Q1, Stock Rises +8%


Enterprise software giant Oracle (ORCL - Free Report) outperformed on both top and bottom lines this afternoon, rebounding from a rare miss on earnings the prior quarter. Reporting $1.39 per share amounted to a 7-cent beat over the Zacks consensus, while quarterly sales of $13.3 billion narrowly surpassed the $1.32 billion analysts were expecting. Guidance will be forthcoming on the conference call.

Why Oracle shares are up +8%, most likely, has to do with two high-profile partnerships: one with Google Cloud and another with Amazon Web Services (AWS) — an interesting development considering earlier animosity between Amazon (AMZN - Free Report) and Oracle. The company’s press release called it a “milestone in multi-cloud.” 

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